Investment grade intact despite Q3 underspending

Global debt watchers Moody’s Ratings and Fitch Ratings have “verbally” affirmed their investment-grade credit outlook for the Philippines, even as the country has been flooded with cases tied to alleged corruption in public infrastructure funds.

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Department of Budget and Management (DBM) Undersecretary and Principal Economist Joselito R. Basilio told reporters on the sidelines of the DBM’s 2025 Fiscal Policy Conference that both credit rating agencies sounded more optimistic than the local sentiment.

“Both debt watchers verbally affirmed their credit outlook for the Philippines. They know that the domestic economy is resilient,” Basilio told reporters on Monday, Oct. 27.

“Fitch knows the positive side—that this will only improve the way we do things, that this will result in reform,” he added.

It can be recalled that S&P Global Ratings recently held back from raising by a notch its ‘BBB+’ investment-grade sovereign credit rating for the Philippines because the country was caught in the middle of the flood control mess.